Comcast announces small rate hike for Oct. 15

Comcast announced a rate increase effective Oct. 15 that will translate into a 1.6 percent increase in monthly cable service. It’s still an increase but it’s not the 4.5 percent increase last year for cable subscribers or the 5 percent increase in 2007.

Comcast said the Digital Starter package, taken by a large number of users, will increase by $2.04 from $59.95 to $61.99. If you’re on a promotional offer, you’re good to go until the promotion period ends.

There’s also a $2 increase to lease a cable modem for Internet service from $3 a month to $5 a month. There’s also the same increase for modem users who get Comcast Digital Voice though if you use a modem to get both services, you’ll only pay the increase once. You can also buy your own modem for about $150 and avoid the monthly fee.

Comcast said the fee hike reflects the increased cost of doing business, rising programming costs and investments in future technology. The fee increase for modem leasing in particular is due to the switch to DOCSIS 3.0, a new delivery technology that allows users to get up to 50 megabits per second for downloads.